European digital television service providers will share an $11bn market by 2002 according to a new report from technology analysts Datamonitor. Relations with commercial transaction providers such as retailers and games suppliers will become increasingly important as commission from commercial transactions will account for 10% of premium services and transaction revenues. The report, Making Money in New Media Markets, found that 20 million European households will have digital television in the year 2002. That is a rise from just under 2 million at the end of this year. The increase will be accompanied by an average rise in revenue per household from $40 to $50 a month. Subscriptions will continue to be the most important source of income for digital television companies. Service beyond a basic multichannel package received by digital television customers will based initially around pay per view sports and near video on demand films. As penetration of digital cable increases and telecoms back links for satellite customers become the norm, the number of interactive services available over the digital television medium will increase.
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